The Role of Digital Financial Inclusion in Improving The Sustainability of MSMEs Business after The Covid-19 Pandemic
DOI:
https://doi.org/10.62394/scientia.v4i2.254Keywords:
digital financial inclusion, MSMEs, fintech, financial literacy, business sustainabilityAbstract
This study aims to analyze the role of digital financial inclusion in improving the sustainability of Micro, Small, and Medium Enterprises (MSMEs) post-COVID-19 pandemic through a Systematic Literature Review approach. The literature was collected from indexed databases, Google Scholar, and DOAJ, with a publication period of 2016–2025. The study results indicate that digital transformation, fintech service integration, and digital financial literacy are key pillars that support each other in promoting financial inclusion and MSME sustainability. Digital transformation improves operational efficiency and financial performance, fintech services expand access to financing and promote transparency, while digital financial literacy serves as the foundation for the effective and equitable use of financial technology. However, the study also identified significant gaps in the form of varying MSME digital readiness, limited infrastructure, low digital literacy among vulnerable communities, and regulatory uncertainty that limit optimal implementation. These findings emphasize the need for an integrative strategy that combines digitalization, financial education, and supporting policies to promote more equitable financial inclusion and MSME sustainability post-pandemic.
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Ali, M. J., Bhuiyan, A. B., Zulkifli, N., & Hassan, M. K. (2022). The COVID-19 Pandemic: Conceptual Framework for the Global Economic Impacts and Recovery. In Towards a Post-Covid Global Financial System. https://doi.org/10.1108/978-1-80071-625-420210012
Aminullah, E., Fizzanty, T., Nawawi, N., Suryanto, J., Pranata, N., Maulana, I., Ariyani, L., Wicaksono, A., Suardi, I., Azis, N. L. L., & Budiatri, A. P. (2024). Interactive Components of Digital MSMEs Ecosystem for Inclusive Digital Economy in Indonesia. Journal of the Knowledge Economy, 15(1). https://doi.org/10.1007/s13132-022-01086-8
Bai, C., Quayson, M., & Sarkis, J. (2021). COVID-19 pandemic digitization lessons for sustainable development of micro-and small- enterprises. In Sustainable Production and Consumption (Vol. 27). https://doi.org/10.1016/j.spc.2021.04.035
Bris, A., Wang, T. Y. H., Zatzick, C. D., Miller, D. J. P., Fern, M. J., Cardinal, L. B., Gregoire, D. A., Shepherd, D. A., Westphal, J. D., Shani, G., Troster, C., Van Quaquebeke, N., Lanaj, K., Hollenbeck, J. R., Ilgen, D. R., Barnes, C. M., Harmon, S. J., Feldman, E. R., DesJardine, M. R., … Sangiorgi, F. (2021). KNIGHTS, RAIDERS, AND TARGETS - THE IMPACT OF THE HOSTILE TAKEOVER - COFFEE,JC, LOWENSTEIN,L, ROSEACKERMAN,S. JOURNAL OF BANKING & FINANCE, 37(1).
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Hasbolah, F., Rosli, M. H., Hamzah, H., Omar, S. A., & Bhuiyan, A. B. (2021). THE DIGITAL ACCOUNTING ENTREPRENEURSHIP COMPETENCY FOR SUSTAINABLE PERFORMANCE OF THE RURAL MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES): AN EMPIRICAL REVIEW. International Journal of Small and Medium Enterprises, 4(1). https://doi.org/10.46281/ijsmes.v4i1.1471
Hazar, A., & Babuşcu, Ş. (2023). Financial Technologies: Digital Payment Systems and Digital Banking. Today’s Dynamics. Journal of Research, Innovation and Technologies, 2(2). https://doi.org/10.57017/jorit.v2.2(4).04
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Kolzow, D. R., Smith, C. C. C., Serrat, O., Dilie, H. M., Zeeshan, S., Ng, S. I., Ho, J. A., Jantan, A. H., Massey, J., Sulak, T., Sriram, R., Dennis, R. S., Bocarnea, M., Hai, T. N., Van, Q. N., Herbert, S. L., So-Jung Kim, Kyoung-Seok Kim, Y.-G. C., Guillaume, D. O., Honeycutt, D. A., … Ingram, O. C. J. (2021). Unit 5 Theories of Leadership. International Journal of Organizational Leadership, 1(1).
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Manap, A., Yulia Sasmiyati, R., Edy, N., Idris, N., & Pan, S. (2023). The Role Of Fintech In Micro, Small And Medium Enterprises (MSMES). Jurnal Ekonomi, 12(01).
Maya, D., & Ahmad, R. (2022). Digital Literacy Readiness From The Msme Perspective: Literature Review. RJOAS, 11(131).
Nanang Wahyudin, Novita Herlissha, Christianingrum, & Dwi Rizki Aldiesi. (2022). The Utilization of E-Commerce and QRIS as Digital Payment Tools to Improve Sales Performance through Competitive Advantage in MSME. Journal of Consumer Sciences, 7(2). https://doi.org/10.29244/jcs.7.2.134-147
Oktafian Histori S. (2022). FINANCIAL LITERACY, SOCIAL INFLUENCE AND THE USE OF DIGITAL PAYMENTS: A LITERATURE REVIEW. Proceeding of The International Conference on Economics and Business, 1(2). https://doi.org/10.55606/iceb.v1i2.124
Putra, T. W. A., Solechan, A., & Hartono, B. (2023). Transformasi Digital Pada UMKM Dalam Meningkatkan Daya Saing Pasar. Jurnal Informatika Upgris, 9(1). https://doi.org/10.26877/jiu.v9i1.15096
Rasid, F. E. T., H, S. P., & Rizal, M. N. (2021). FAKTOR PENDORONG, PROSES DAN TANTANGAN TRANSFORMASI DIGITAL PADA USAHA MIKRO, KECIL DAN MENENGAH: TINJAUAN PUSTAKA SISTEMATIS. Informasi Interaktif, 6(2).
Varga, J. (2021). Defining the economic role and benefits of micro, small and medium-sized enterprises in the 21st century with a systematic review of the literature. Acta Polytechnica Hungarica, 18(11). https://doi.org/10.12700/aph.18.11.2021.11.12
Wen, H., & Leon, J. De. (2024). Research on the Digital Transformation of Financial Management in Small and Medium-sized Enterprises Under the Background of Big Data and Cloud Computing. Advances in Computer and Communication, 4(6). https://doi.org/10.26855/acc.2023.12.002
Ali, M. J., Bhuiyan, A. B., Zulkifli, N., & Hassan, M. K. (2022). The COVID-19 Pandemic: Conceptual Framework for the Global Economic Impacts and Recovery. In Towards a Post-Covid Global Financial System. https://doi.org/10.1108/978-1-80071-625-420210012
Aminullah, E., Fizzanty, T., Nawawi, N., Suryanto, J., Pranata, N., Maulana, I., Ariyani, L., Wicaksono, A., Suardi, I., Azis, N. L. L., & Budiatri, A. P. (2024). Interactive Components of Digital MSMEs Ecosystem for Inclusive Digital Economy in Indonesia. Journal of the Knowledge Economy, 15(1). https://doi.org/10.1007/s13132-022-01086-8
Bai, C., Quayson, M., & Sarkis, J. (2021). COVID-19 pandemic digitization lessons for sustainable development of micro-and small- enterprises. In Sustainable Production and Consumption (Vol. 27). https://doi.org/10.1016/j.spc.2021.04.035
Bris, A., Wang, T. Y. H., Zatzick, C. D., Miller, D. J. P., Fern, M. J., Cardinal, L. B., Gregoire, D. A., Shepherd, D. A., Westphal, J. D., Shani, G., Troster, C., Van Quaquebeke, N., Lanaj, K., Hollenbeck, J. R., Ilgen, D. R., Barnes, C. M., Harmon, S. J., Feldman, E. R., DesJardine, M. R., … Sangiorgi, F. (2021). KNIGHTS, RAIDERS, AND TARGETS - THE IMPACT OF THE HOSTILE TAKEOVER - COFFEE,JC, LOWENSTEIN,L, ROSEACKERMAN,S. JOURNAL OF BANKING & FINANCE, 37(1).
García-Santillán, A., Venegas-Martínez, F., & Mendoza-Rivera, R. J. (2024). Financial Literacy of Workers in the Tourism Industry in Mexico in 2023: a Structural Equations Approach. Revista Mexicana de Economia y Finanzas Nueva Epoca, 19(1). https://doi.org/10.21919/remef.v19i1.962
Gunawan, A., Jufrizen, & Pulungan, D. R. (2023). Improving MSME performance through financial literacy, financial technology, and financial inclusion. International Journal of Applied Economics, Finance and Accounting, 15(1). https://doi.org/10.33094/ijaefa.v15i1.761
Hasbolah, F., Rosli, M. H., Hamzah, H., Omar, S. A., & Bhuiyan, A. B. (2021). THE DIGITAL ACCOUNTING ENTREPRENEURSHIP COMPETENCY FOR SUSTAINABLE PERFORMANCE OF THE RURAL MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES): AN EMPIRICAL REVIEW. International Journal of Small and Medium Enterprises, 4(1). https://doi.org/10.46281/ijsmes.v4i1.1471
Hazar, A., & Babuşcu, Ş. (2023). Financial Technologies: Digital Payment Systems and Digital Banking. Today’s Dynamics. Journal of Research, Innovation and Technologies, 2(2). https://doi.org/10.57017/jorit.v2.2(4).04
Jameaba, M. (2024). Digitalization, Emerging Technologies, and Financial Stability: Challenges and Opportunities for the Indonesian Banking Sector and Beyond. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4808469
Kolzow, D. R., Smith, C. C. C., Serrat, O., Dilie, H. M., Zeeshan, S., Ng, S. I., Ho, J. A., Jantan, A. H., Massey, J., Sulak, T., Sriram, R., Dennis, R. S., Bocarnea, M., Hai, T. N., Van, Q. N., Herbert, S. L., So-Jung Kim, Kyoung-Seok Kim, Y.-G. C., Guillaume, D. O., Honeycutt, D. A., … Ingram, O. C. J. (2021). Unit 5 Theories of Leadership. International Journal of Organizational Leadership, 1(1).
Machuca-Vílchez, J. A., Ramos-Cavero, M. J., & Cordova-Buiza, F. (2023). Knowledge management in financial education in Peruvian government programs focused on women: Progress and challenges. Knowledge and Performance Management, 7(1). https://doi.org/10.21511/kpm.07(1).2023.01
Manap, A., Yulia Sasmiyati, R., Edy, N., Idris, N., & Pan, S. (2023). The Role Of Fintech In Micro, Small And Medium Enterprises (MSMES). Jurnal Ekonomi, 12(01).
Maya, D., & Ahmad, R. (2022). Digital Literacy Readiness From The Msme Perspective: Literature Review. RJOAS, 11(131).
Nanang Wahyudin, Novita Herlissha, Christianingrum, & Dwi Rizki Aldiesi. (2022). The Utilization of E-Commerce and QRIS as Digital Payment Tools to Improve Sales Performance through Competitive Advantage in MSME. Journal of Consumer Sciences, 7(2). https://doi.org/10.29244/jcs.7.2.134-147
Oktafian Histori S. (2022). FINANCIAL LITERACY, SOCIAL INFLUENCE AND THE USE OF DIGITAL PAYMENTS: A LITERATURE REVIEW. Proceeding of The International Conference on Economics and Business, 1(2). https://doi.org/10.55606/iceb.v1i2.124
Putra, T. W. A., Solechan, A., & Hartono, B. (2023). Transformasi Digital Pada UMKM Dalam Meningkatkan Daya Saing Pasar. Jurnal Informatika Upgris, 9(1). https://doi.org/10.26877/jiu.v9i1.15096
Rasid, F. E. T., H, S. P., & Rizal, M. N. (2021). FAKTOR PENDORONG, PROSES DAN TANTANGAN TRANSFORMASI DIGITAL PADA USAHA MIKRO, KECIL DAN MENENGAH: TINJAUAN PUSTAKA SISTEMATIS. Informasi Interaktif, 6(2).
Varga, J. (2021). Defining the economic role and benefits of micro, small and medium-sized enterprises in the 21st century with a systematic review of the literature. Acta Polytechnica Hungarica, 18(11). https://doi.org/10.12700/aph.18.11.2021.11.12
Wen, H., & Leon, J. De. (2024). Research on the Digital Transformation of Financial Management in Small and Medium-sized Enterprises Under the Background of Big Data and Cloud Computing. Advances in Computer and Communication, 4(6). https://doi.org/10.26855/acc.2023.12.002
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